Auto insurance. Property insurance. Life insurance. The word insurance gets thrown about a lot, especially in recent times, and it can get a little overwhelming, especially if the technicalities are foreign to you. And even when they are not; there’s still a lot to keep you sceptical. Knowledge is power after all, and so we’ll be guiding you through insurance and a very crucial aspect of insurance that’s probably not talked about enough. Even when it is, most people overlook it; considering it unnecessary. Here’s all you need to know about health insurance in Nigeria.
What is Insurance?
Insurance is simply a protection against unforeseen mishaps. Insurance is a form of risk management, primarily concerned with protecting one from the risk of a loss. In insurance, the goal is to transfer the risk of a loss from one individual to another in exchange for monetary value, known as premium. Through insurance, individuals, organizations and governments exchange the risk of a significant loss for the certainty of a small loss. In other words, you get compensated for your damages based on the amount you have paid as premium.
What is health insurance?
Health insurance is simply an insurance policy that insures you against risks on your health. It covers medical expenses when you’re sick as well as preventive expenses; that is, costs incurred before you get sick, such as monthly checkups and doctor visits. In the same vein that auto insurance covers your car if you get into an accident, health insurance covers you in the event of sickness or injury.
What is a health insurance policy, and who issues it?
An insurance policy is a written contract that contains details on a person’s health insurance plan. It puts health insurance into effect; making it legal and ensuring you get compensation for your losses, as agreed to in terms and conditions. An insurance company issues health insurance policies.
What’s an HMO?
Health Maintenance Organization. This is a prepaid group health plan that entitles members to health services, primarily on preventive medicine (before you get sick). It is a primary feature in employment benefits. It is sponsored by the employer, with a small amount deducted from your salary.
Should you have health insurance?
No one plans to fall sick or injured. Yet it happens. Sure, you don’t want to have any bad news, but it’s better to be safe than sorry.
Who can get health insurance?
Anyone can. Health insurance can be for family, friends or self. You usually pay a monthly premium for this on a stipulated price. HMOs typically cost less, with a small amount deducted from your salary, as well as that of others in your group. Health insurance policies come with an array of services and benefits, depending on what’s been agreed. Some countries and states have a National Health Insurance Scheme, providing cover for their citizens’ medical expenses.
If a property can be insured, how much more your health? Health insurance is that backup you need for any unforeseen health issues that may arise whenever you are sick or injured. Health insurance is crucial, and you should get one today